A while ago I wrote about me having a 64-bit system with SQL Server 2008 Express edition 64-bit and Visual Studio 2008 SP1 not beeing able to create a service based database because of some wrong registry keys. Installing a 32-bit version of the database should have solved the problem but that didn’t work for me. So I reverted to Sql Server 2005 Express Edition.

The problem is described on the Microsoft connect page.

Now Microsoft has released a hotfix for this. To get the hotfix you need to create a support case online (99$, which should be refunded) or use an MSDN support case voucher. Or you can use Google as I did and find the direct link to the hotfix

I AM NOT RESPONSIBLE FOR INSTALLING THIS HOTFIX, IT WORKED FOR ME, BUT IT MIGHT NOT FOR YOU. THERE IS A REASON WHY MICROSOFT DOES NOT MAKES THIS HOTFIX PUBLIC. USE WITH CARE.